Resilience and risks of cross-border mergers and acquisitions
ISSN: 1525-383X
Article publication date: 28 October 2019
Issue publication date: 8 November 2019
Abstract
Purpose
In cross-border mergers and acquisitions (M&As), acquirers often fail to achieve the expectations they held when they made the M&A deals. This paper aims to propose that the risks of cross-border M&As can be mitigated by building and cultivating organizational resilience as a prime means of risk management.
Design/methodology/approach
The research examines risks associated with cross-border M&A and how such risks can be mitigated by developing resilience. It presents dual cases of acquisitions of the biggest branded mobile phone manufacturer in Taiwan.
Findings
The authors find that the acquirer faces multiple risks in cross-border M&A transactions, including financial, strategic and organizational, and process risks that arise from misalignment between the goal of the M&As and the post-acquisition performance of the target firms.
Originality/value
The research provides theoretical insights on organizational resilience and how it can mitigate the specific risks involved in cross-border M&As, thereby developing coherent organizational resilience processes.
Keywords
Acknowledgements
This work was supported by Hankuk University of Foreign Studies Research Fund.
Citation
Hsu, C.-C., Park, J.-Y. and Lew, Y.K. (2019), "Resilience and risks of cross-border mergers and acquisitions", Multinational Business Review, Vol. 27 No. 4, pp. 427-450. https://doi.org/10.1108/MBR-05-2019-0035
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited